One of the parts on the cash flow statement that details how much money was made or spent on various investment-related activities during a given period is Cash Flow From Investing Activities (CFI). Buying tangible assets, investing in securities, or selling securities or assets are all examples of investing activity.Cash flow from investing activities is one of the most important measures for investors to review each quarter. It provides a snapshot of what happened in your business during the period and how your company was able to generate money from investing activities.In order to determine whether you have enough cash on hand to fund your operations, you need to know how much money you’ve generated through investing activities in a given quarter. If it’s not enough, then you need to find additional sources of revenue so that you can keep your business running smoothly.Cash flow from investing activities can be broken down into two categories: operating activities and investing activities.Operating Activities: This category includes all the cash flows related to the running of an entity's business. This includes dividends paid to shareholders, interest paid on debt and financing costs incurred by issuing debt. Dividends are one of the most important components of operating cash flows because they represent an opportunity for a company to increase its stock price by distributing cash to its shareholders.Investing Activities: This category includes all cash flows related to investing in assets such as real estate, equipment, inventory and other fixed assets that are not used up in current operations but will be used in future operations (e.g., machinery purchased for future production).The Cash Flow From Investing Activities (CFI) section includes both investing activities and investing activities in other categories such as salaries and wages paid to employees for their services, interest paid on debts and interest received from lenders for loans made to customers (investment in debt), dividends received from stocks and stock options purchased by employees, rent paid for office space used by the business, etc.
